ROYCE C. LAMBERTH, Chief Judge.
Plaintiff Stephanie Schweizer was terminated after notifying supervisors about her company's violation of government contracts. She subsequently brought these allegations to the government, which ultimately reached a proposed settlement with the company — a settlement of which Ms. Schweizer would stand to receive a certain percentage. In this lawsuit, she challenges the settlement, and alleges that she was terminated in retaliation for her whistle-blowing. The case is before the Court on remand to determine whether the settlement is "fair, adequate, and reasonable" after a hearing pursuant to 31 U.S.C. § 3730(c)(2)(B), and to rule on "the ultimate question [of] `whether a reasonable jury could infer ... retaliation from all the evidence.'" U.S. ex rel. Schweizer v. Océ N.V., 677 F.3d 1228, 1237, 1241 (D.C.Cir. 2012), rev'g 681 F.Supp.2d 64 (D.D.C.2010), and rev'g 772 F.Supp.2d 174 (D.D.C.2011). Because the Court finds the proposed settlement is "fair, adequate, and reasonable," the government's motion to dismiss Ms. Schweizer's qui tam claims, ECF No. 63, is GRANTED. Because a reasonable jury could infer that Ms. Schweizer's termination was retaliatory, defendants' supplemental motion for summary judgment, ECF No. 124, as to Ms. Schweizer's retaliation claim is DENIED.
In late 2004, plaintiff Stephanie Schweizer went to work for defendant Océ North America, a private company, supervising its fulfillment of certain government contracts. U.S. ex rel. Schweizer, 677 F.3d at 1229-30. Contracts between Océ and the General Services Administration contained "price reduction" clauses, requiring Océ to provide government customers with the same discount offered to certain private sector purchasers. Id. at 1229 (citing 48 C.F.R. § 552.238-75). These contracts also contained "country-of-origin" clauses, requiring Océ to sell to the government only goods made in the United States or other countries designated under the Trade Agreements Act, 19 U.S.C. § 2501 et seq. Schweizer, 677 F.3d at 1229.
The Court of Appeals, reviewing the same record in the light most favorable to
Schweizer, 677 F.3d at 1230-31.
The Court of Appeals also found, based on the same record before this Court, that Océ had "presented an alternative, nondiscriminatory basis for terminating her employment." Id. at 1241. Because the circuit did not describe this in detail, this opinion will review the evidence regarding Ms. Schweizer's conduct in the months leading up to her termination that provides the defendant with an alternative, nondiscriminatory basis for termination.
In early 2005, Ms. Schweizer was tasked with facilitating the novation of a contract. Def.'s Statement of Undisputed Material Facts ¶ 10, ECF No. 124; Schweizer Dep., Ex. D, 176:2-6. In August, Mr. Frost reprimanded Ms. Schweizer for failing to complete this task in a timely manner and reassigned it to her co-worker, Kathleen Carey. Def.'s Statement ¶¶ 10-11; Pl.'s Resp. to Def.'s Statement ¶ 11; Schweizer Dep. 176:7-10 (acknowledging that Mr. Frost "repeatedly" asked her about the status of her completing the assignment.); id. at 201:1-14 (acknowledging that Mr. Frost communicated to her that she needed to process contract modifications in a more timely manner, and that if a contract modification couldn't be completed within 48 hours, she was to let him know so he would "know what was going on").
Ms. Schweizer failed to report to work on Monday, October 10. Mr. Frost e-mailed her to learn why she was absent. Ms. Schweizer responded the next day, stating that she believed (mistakenly) that the company had been closed for a holiday. Defs.' Statement ¶¶ 24-25; Pl.'s Resp. ¶¶ 24-25. The Court takes judicial notice of the fact that October 10, 2005 was Columbus Day, a federal holiday. See 2005 Federal Holidays, http://archive.opm.gov/ Operating — Status — Schedules/fedhol/ 2005.asp (last accessed, June 18, 2013).
In the Spring of 2005, Ms. Schweizer complained to Mr. Frost on several occasions that her co-worker Kathleen Carey was "sabotaging her work." Pl.'s Resp. ¶ 12; see also Def.'s Statement ¶ 12. The parties dispute the nature of this complaint and how it was received. Compare Def.'s Statement ¶ 12 ("[I]n Spring 2005, approximately once per week, Schweizer began making vague allegations that other employees were sabotaging her work: yelling and using offensive language as she did so. In response to each report, Frost asked Schweizer to provide details or some evidence that her co-workers were taking the actions of which she accused them. Schweizer never provided that information."), with Pl.'s Resp. ¶ 12 (denying that Ms. Schweizer made such reports once per week or that she used offensive language or yelled; explaining that Ms. Carey wrongly altered some of Ms. Schweizer's
In April 2005, Ms. Schweizer had a discussion with Mr. Frost about her co-worker Lee Metzger and whether he had been "spreading rumors" about her. Pl.'s Resp. ¶ 14; see also Def.'s Statement ¶¶ 13-14. The parties disagree about the circumstances of this discussion. Compare Def.'s Statement ¶¶ 13-15 (stating that after Schweizer "went into Frost's office and announced her intent to lodge a formal complaint against Lee Metzger," whom she accused of "spreading rumors and speaking disparagingly about [her] to other employees," Frost "investigated the matter and could not find any support for Schweizer's allegations."), with Pl.'s Resp. ¶¶ 13-15 (stating that Schweizer was "called into Frost's office" where Frost and another co-worker informed her that Metzger was "spreading rumors about her" and "asked her to file a complaint" but that Schweizer "did not want to file a complaint").
In May 2005, Ms. Schweizer had a confrontation with her co-worker Kathleen Carey regarding alleged negative comments she had made about Ms. Schweizer's performance. Pl.'s Resp. ¶ 16; Def.'s Statement ¶ 16. During the confrontation, Ms. Carey called Mr. Frost. Pl.'s Resp. ¶ 17; Def.'s Statement ¶ 17. Ms. Schweizer later repeated this complaint about Ms. Carey to Mr. Frost, and further alleged that Ms. Carey had "entered into her office to modify documents affiliated with the GSA Schedule contracts." Pl.'s Resp. ¶ 19. On September 2, Ms. Schweizer had a "heated discussion" with Mr. Frost in his office in which she "raised [her] voice" while telling Mr. Frost that Ms. Carey "has falsified documents to the government" and that "[i]t was a very serious problem that he" did not "want to dwell on this." Schweizer Dep. 162:4, 163:15-164:2, 170:3-4. During the meeting, Mr. Frost told Ms. Schweizer that there were aspects of her performance that needed improvement, and that "he was not pleased." Schweizer Dep. 199:2-11. Following this meeting, Mr. Frost sent Ms. Schweizer home for the day and emailed her documenting the incident, stating:
Email re: Friday, Dated Sept. 2, 2005, 11:53 AM, from Ronald Frost to Stephanie Schweizer, Defs.' Ex. J, ECF No. 124-10; see also Schweizer Dep. at 162:17-163:4 (authenticating the document). The parties disagree regarding the other circumstances of these events. Compare Def.'s Statement ¶¶ 16-21 (stating that Schweizer initially "verbally and physically confronted Carey"; that, when called by Ms. Carey, Mr. Frost confirmed that she had not denigrated Ms. Schweizer; that, after this call to Mr. Frost, Ms. Schweizer proceeded to "yell and curse" at Ms. Carey; that Ms. Schweizer subsequently complained to Mr. Frost that Ms. Carey had "falsif[ied] documents and br[oken] into [Ms.] Schweizer's office to destroy evidence of her undermining activities, and to take paper from her printer"; and that, in September, Ms. Schweizer "threw a screaming tantrum in Frost's office" alleging
In November, Ms. Schweizer had a conversation with her co-worker Lee Metzger after she had heard others making comments about "[Mr. Metzger's] comments about her." See Email Chain re: Tues. Nov 22nd Issues, between Stephanie Schweizer and Ronald Frost, Dated Nov. 23, 2005, Defs.' Ex. M, ECF. No. 124-13; but see Schweizer Dep. 316:3-317:8 (reviewing without confirming or denying the authenticity of the document, nor accuracy of the statements). In a subsequent e-mail sent by Mr. Frost to Ms. Schweizer regarding this conversation, Mr. Frost wrote that Mr. Metzger had called him to complain that Ms. Schweizer had "initiated" a "confrontation" in his office; that he had "no idea what prompted this but again this has caused a riff [sic] in the office"; that the confrontation was "out of line"; that he had previously "cautioned and counseled" her on her "chain of command and also on not creating unwarranted issues in the office that have no basis," and that he had told her "on numerous occasions that if [she] ha[d] issues to bring them to [him]." Defs.' Ex. M. Ms. Schweizer explained her conversation with Mr. Metzger in her e-mail response to Mr. Frost, stating "I don't appreciate his behavior and un professionalism [sic].... I have a right to tell him to lay off and that is all I did." Id. (emphasis added).
Mr. Frost claims that he held a face-to-face meeting with Ms. Schweizer on November 29 during which he informed her that he was going to work with the human resources department to prepare a "letter of concern" to address Schweizer's "abusive conduct and poor work performance." Defs.' Statement ¶ 27. Ms. Schweizer denies this meeting occurred. Pls.' Resp. ¶ 27. Two days later, Mr. Frost e-mailed Jerry Whelan, Director of Human Resources, with a draft letter (to be sent to Ms. Schweizer) listing several problems with her performance, and stating that if her performance did not improve "substantially within thirty days," her employment might be terminated. E-mail re: draft of issues to write Stephanie up, from Ronald Frost to Jerry Whelan, dated Dec. 1, 2005, 12:17 PM, Defs.'s Ex. N, ECF No. 124-14. A few days later, Ms. Schweizer called Bryan Beauchamp, Mr. Frost's supervisor. Defs.' Statement ¶¶ 35-38. Ms. Schweizer later acknowledged that she was "utterly distraught" and "absolutely devastated" when she made the call, and that she had "probably had a glass or two of wine." Schweizer Dep. 280:20-21, 281:1-2; see also id. at 280:3-8 ("Q: Were you drunk? A: I wouldn't say that. I was utterly, utterly devastated. Q: You say you wouldn't say that. Were you impaired? A: I was impaired by my devastation."). Ms. Schweizer discussed the alleged violations of the GSA contract, and complained to Mr. Beauchamp that "they were going to fire [her] and ... that they were going to try to destroy [her], as Mr. Frost said they were going to do." Schweizer Dep. 281:10-13; Def.'s Statement ¶ 37. Otherwise, the parties sharply disagree about the subject of the conversation. Compare Defs.' Statement ¶¶ 35-38 (stating that Ms.
A few days later, Schweizer was suspended with pay. See Letter from Bryan Beauchamp to Stephanie Schweizer, Dated Dec. 15, 2005, Def.'s Ex. P, ECF No. 124-14; Schweizer Dep. 286:9-12. A week later, Mr. Beauchamp sent a letter to Ms. Schweizer terminating her employment. Def.'s Ex. P. The letter noted that Ms. Schweizer was an employee at will, and thus could be terminated for "any reason or no reason, consistent with public policy." Def.'s Ex. P. Nonetheless, the letter summarized the events described above,
Defs.' Ex. P.
On the same day Mr. Beauchamp sent the termination letter to Ms. Schweizer, Océ's corporate counsel sent the Inspector General of the GSA a letter notifying them that Ms. Schweizer had reported "wrongdoing" regarding two contracts, but insisting that there was "no reason to believe that there has been any wrongdoing regarding" those contracts. Letter from Scott R. Hawthorn to Brian D. Miller, Dec. 15, 2005, Defs.' Ex. Q, ECF No. 124-17.
Océ's Human applicable Resources Policy provides that:
Human Resources Policy # 5.2, Effective Date 12/1/03, Def.'s Ex. G, ECF No. 124-7. The Addendum to this policy further provides:
Id.
Schweizer, 677 F.3d at 1231-32 (some internal quotations and citations omitted). The settlement agreement further provides that the allocation of the nineteen percent between Ms. Schweizer and Ms. Vee shall be determined by this Court. See Settlement Agreement 3, ECF No. 68-1. At the hearing conducted on July 10, 2013, the Court learned that the settlement has already been paid, and an allocation between the two plaintiffs has already been made.
This Court dismissed Counts I and II without evaluating the proposed settlement, finding that "the government has an unfettered right to dismiss' a qui tam suit," U.S. ex rel. Schweizer v. Océ, N.V., 681 F.Supp.2d 64, 65 (D.D.C.2010) (quoting Hoyte v. Am. Nat'l Red Cross, 518 F.3d 61, 65 (D.C.Cir.2008)), and granted Océ's motion for summary judgment on Count III, finding that Ms. Schweizer had failed to engage in any protected activity upon which a retaliation claim might have been built. U.S. ex rel. Schweizer v. Océ N. Am., Inc., 772 F.Supp.2d 174 (D.D.C.2011).
The Court of Appeals reversed on all counts. Schweizer, 677 F.3d 1228. The circuit held that it was error to dismiss the qui tam claims without determining whether the proposed settlement agreement was "fair, adequate, and reasonable" after a hearing pursuant to 31 U.S.C. § 3730(c)(2)(B). Schweizer, 677 F.3d at 1237. And, the circuit held that Ms. Schweizer had successfully stated a prima facie retaliation claim, and that Océ had presented "an alternative, non-discriminatory basis for terminating her employment," leaving only "the ultimate question whether a reasonable jury could infer retaliation from all the evidence." Id. at 1241 (internal modifications and quotations omitted).
A hearing on the proposed settlement pursuant to 31 U.S.C. § 3730(c)(2)(B) was conducted on July 1, 2013. A hearing on the retaliation claim was conducted on July 10, 2013.
Subsection 3730(c)(2)(B) of Title 31 of the U.S.Code provides that the government may settle a false claims action with the defendant "notwithstanding the objections of the person initiating the action if the court determines, after a hearing, that the proposed settlement is fair, adequate, and reasonable under all the circumstances." The determination of whether a False Claims Act settlement is "fair, adequate, and reasonable under all the circumstances" is apparently one of first impression in this circuit. Other courts have looked for guidance to principles governing judicial review of class action settlements under the Federal Rules of Civil Procedure, which provide that if a settlement proposal "would bind class members, the court may approve it only after a hearing and on finding that it is fair, reasonable, and adequate." Fed.R.Civ.P. 23(e)(2) (emphasis added); see U.S. ex rel. Nudelman v. Int'l Rehab. Associates, Inc., 00-cv-1837, 2004 WL 1091032, at *1 n. 1 (E.D.Pa. May 14, 2004) (finding, as a matter of first impression, that since Congress borrowed the key language of 31 U.S.C. § 3730(c)(2)(B) from the rule governing judicial review of class action settlements, courts evaluating proposed False Claims Act settlements should apply the same factors
While there is "no single test" for class action settlement approval under Rule 23(e) in this jurisdiction, courts look to the following factors: "(a) whether the settlement is the result of arm's length negotiations; (b) the terms of the settlement in relation to the strengths of plaintiffs' case; (c) the status of the litigation proceedings at the time of settlement; (d) the reaction of the class [here, of the relator]; and (e) the opinion of experienced counsel." In re LivingSocial Mktg. & Sales Practice Litig., 11-cv-0745, ___ F.R.D. ___, ___, 2013 WL 1181489, at *7 (D.D.C. Mar. 22, 2013) (Huvelle, J.) (citing In re Lorazepam & Clorazepate Antitrust Litig., 205 F.R.D. 369, 375 (D.D.C.2002) (Hogan, C.J.) (collecting cases)).
Ms. Schweizer's counsel raised one important additional issue regarding 31 U.S.C. § 3730(c)(2)(B) at the July 1, 2013 hearing that is also apparently of first impression in this circuit. Is a plaintiff-relator who objects to a proposed False Claims Act settlement reached between the government and the defendant entitled to full-blown discovery on her claims in order to prove that the settlement in inadequate? The provision requiring the hearing provides no such right on its face, see § 3730(c)(2)(B) ("The Government may settle the action with the defendant notwithstanding the objections of the person initiating the action if the court determines, after a hearing, that the proposed settlement is fair, adequate, and reasonable under all the circumstances."). Moreover, allowing full-blown discovery as of right would risk transforming the § 3730(c)(2)(B) hearing into a trial on the merits of plaintiff's claims and the government's estimations of the litigation risks. It would put the cart before the horse, in essence making trial a precondition of settlement. Given both the lack of textual support for discovery rights at this stage and the difficulties posed by imposing these costs the Court declines to read such a right into the statute.
The hearing guaranteed to plaintiff-relators under § 3730(c)(2)(B) does not give them the right to try their cases on the merits prior to settlement. Rather, it serves a more limited purpose of forcing the government to provide some reasoning behind its decision to settle the case and giving the plaintiff-relators an opportunity to direct the court's attention to facts or allegations that would suggest the settlement was not "fair, adequate and reasonable under all the circumstances," for instance, collusion between the government and the defendant, or significant and unexplained discrepancies between the strength of plaintiffs' case and the settlement.
The Court does not decide here that discovery is never warranted at this stage of proceedings, only that a plaintiff-relator is not entitled to full-blown discovery at this stage as of right. A court may, for example, determine that the government has not adequately explained its reasoning behind the settlement, and may order some limited discovery prior to a § 3730(c)(2)(B) hearing.
Summary judgment should be granted when "the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed.R.Civ.P. 56(a); see also Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). A fact is material if it could affect the outcome of the case. Id. A dispute is genuine if the "evidence is such that a reasonable jury could return a verdict for the nonmoving party." Id. The "evidence of the non-movant is to be believed, and all justifiable inferences are to be drawn in his favor." Id. at 255, 106 S.Ct. 2505. The non-movant, however, must establish more than "the existence of a scintilla of evidence" in support of his position. Id. at 252, 106 S.Ct. 2505.
At the time Ms. Schweizer's claim accrued, 31 U.S.C. § 3730(h) provided that "[a]ny employee who is discharged ... by... her employer because of lawful acts done by the employee ... in furtherance of an action under this section ... shall be entitled to all relief necessary to make the employee whole." 31 U.S.C. § 3730(h) (2006). "This language states two basic elements: (1) acts by the employee `in furtherance of a suit under § 3730 — acts also known as `protected activity'; and (2) retaliation by the employer against the employee `because of' those acts." Schweizer, 677 F.3d at 1237 (quoting United States ex rel. Yesudian v. Howard Univ., 153 F.3d 731, 736 (D.C.Cir.1998)). The Court of Appeals has further divided the second element into two prongs: "(1) did `the employer have knowledge the employee was engaged in protected activity'; and (2) was the employer's adverse action against the employee `motivated, at least in part, by the employee's engaging in that protected activity.'" Id. (quoting Yesudian, 153 F.3d at 736) (alterations omitted).
The McDonnell Douglas burden-shifting framework governs § 3730(h) retaliation claims. Id. at 1240-41 (citing McDonnell Douglas Corp. v. Green, 411 U.S. 792, 93 S.Ct. 1817, 36 L.Ed.2d 668 (1973)). Thus, the plaintiff must first state a prima facie case of retaliation by showing "(1) that [s]he engaged in statutorily protected activity; (2) that [s]he suffered a materially adverse action by his employer; and (3) that a causal link connects the two." Id. at 1240 (quoting Jones v. Bernanke, 557 F.3d 670, 677 (D.C.Cir.2009)). If she does so, "the burden shifts to the employer to `produce admissible evidence that, if believed, would establish that [its] action was motivated by a legitimate, nondiscriminatory reason.'" Id. at 1240-41 (quoting Carter v. George Washington Univ., 387 F.3d 872, 878 (D.C.Cir.2004)). "Once that occurs, `the burden-shifting framework disappears, and a court reviewing summary judgment looks to whether a reasonable jury could infer ... retaliation from all the evidence.'" Id. at 1241 (quoting Carter, 387 F.3d at 878).
There is some confusion as to the nature of the causation requirement for this type of retaliation claim. May a plaintiff succeed by showing that retaliation was merely one of several "motivating factors" behind the adverse action? Or must she show that retaliation was a "but-for" cause of the adverse action? The circuit has endorsed the mixed-motive interpretation, finding that the plaintiff may succeed by showing that the adverse action was "motivated, at least in part, by the employee's engaging in that protected activity." Schweizer, 677 F.3d at 1237 (emphasis added). Notably, this interpretation rests on the Senate Report, not the text of the statute. See id. (quoting Yesudian, 153 F.3d at 736 (quoting S.Rep. No. 99-345, at
The Supreme Court's more recent text-driven interpretation of Title VII's antiretaliation provision casts doubt on this reading. See Univ. of Tex. Sw. Med. Ctr. v. Nassar, ___ U.S. ___, 133 S.Ct. 2517, 186 L.Ed.2d 503 (2013). The provision at issue in Nassar prohibits employers from discriminating against employees "because" they engaged in protected activities under that statute.
The combined lesson of Nassar and Gross is clear: where Congress has given plaintiffs the right to sue employers for adverse actions taken against them by their employers "because of" X, plaintiffs may succeed only by showing that X was a "but-for" cause of the adverse action, not merely one of several "motivating factors." Notwithstanding the circuit's statements to the contrary in this case, because the False Claims Act's retaliation provision includes the same key language as the Title VII retaliation provision recently interpreted by the Supreme Court in Nassar, and the ADEA discrimination provision interpreted in Gross, the Court must apply
Ms. Schweizer's qui tam claims (Counts I & II) are dismissed. Her retaliation claim (Count III) survives.
At the section 3730(c)(2)(B) hearing conducted on July 1, Ms. Schweizer had the opportunity to present arguments to support her contention that the proposed settlement was not "fair, adequate, and reasonable." The Court was not convinced by these arguments. It now approves the proposed settlement, and dismisses Ms. Schweizer's qui tam claims. As noted above (and as conceded by both parties during the July 1, 2013 hearing), the Court bases its conclusion on an evaluation of the proposed settlement under the five factors used by courts in this Circuit to evaluate class action settlements.
A "presumption of fairness, adequacy, and reasonableness may attach to a class settlement reached in arm's length negotiations between experienced, capable counsel after meaningful discovery." In re Vitamins Antitrust Litig., 305 F.Supp.2d 100, 104 (D.D.C.2004) (Hogan, C.J.) (quotations and citations omitted). The same is true of arm's length negotiations between the government and a defendant of potential qui tam claims.
In this case, there is no evidence in the record regarding the nature of bargaining between the government and Océ regarding the terms of the settlement. That said, Ms. Schweizer does not allege any collusion, and concedes that the settlement was reached after a very extensive investigation by the government. Accordingly, this factor supports approval of the settlement.
The benefits to the relators must be "considered in juxtaposition with the risks attendant to continued litigation of this matter." In re LivingSocial Mktg., ___ F.R.D. at ___, 2013 WL 1181489, at *9 (citing In re Lorazepam & Clorazepate Antitrust Litig., 205 F.R.D. 369, 377 (D.D.C.2002) (Hogan, C.J.)).
In a sealed filing, United States' Resp. to Relator Schweizer's Objection, ECF No. 72, and in open court at the July 1, 2013 hearing, the government provided an extensive and detailed account of its decision to settle the case and of its calculations of the ultimate settlement. The government conducted an extensive investigation into these claims, employing GSA auditors, attorneys from the U.S. Attorney's Office and from the Commercial Litigation Section of the Department of Justice. The government collected over 80 boxes of internal Océ documents, conducted numerous interviews, performed audits, and issued an inspector general subpoena. Using this information it had gathered, the government assessed the value of claims, assessed a variety of litigation risks specific to each claim, and came up with a figure for a settlement. Specifically, the government determined that it might be able to prevail on some of
At the July 1 hearing, and in a sealed memorandum, Relator's Reply to DOJ Resp., ECF No. 78, Ms. Schweizer disputed the government's judgments of the strength of her claims, and the risks of litigation. She seemed to suggest that, if allowed to proceed to trial, she would certainly prevail on all of her claims and that any discount of the full damages she would be entitled to.
The Court does not have enough information to make a complete assessment of the merits of plaintiff's claims, or of the government's assessment of those claims — but it need not do so in order to find this factor weighs in favor of approving the settlement. It finds that the government's assessments of the strength of plaintiff's claims and the attendant litigation risks are based on a significant investigative effort on their part, are sufficiently detailed and comprehensive, and that Ms. Schweizer's arguments fail to identify any significant flaw in the government's reasoning. Accordingly, the Court finds that this factor weighs in favor of the settlement.
Courts also "consider whether counsel had sufficient information, through adequate discovery, to reasonably assess the risks of litigation vis-a-vis the probability of success and range of recovery." In re LivingSocial Mktg., ___ F.R.D. at ___, 2013 WL 1181489, *9 (quoting Cohen v. Chilcott, 522 F.Supp.2d 105, 117 (D.D.C. 2007) (quoting In re Lorazepam & Clorazepate Antitrust Litig., MDL 1290, 2003 WL 22037741, *4 (D.D.C. June 16, 2003) (Hogan, C.J.))).
In this case, the government's proposed settlement was made after an extensive investigation into Ms. Schweizer's claims, conducted by GSA auditors and attorneys from the U.S. Attorney's Office and from the Commercial Litigation Section of the Department of Justice, involving extensive document review, as well as interviews with a variety of potential witnesses. Accordingly, the government had adequate information to make an informed judgment regarding the settlement. The Court finds this factor weighs in favor of the settlement.
This factor is less useful in the context of a proposed qui tam settlement, where an objecting relator is a necessary predicate to this very analysis, than in the context of a proposed class action settlement, where the number of objections filed by class members may vary considerably. Nonetheless, the Court notes that, of the
Finally, Courts in this jurisdiction have noted that "[t]he opinion of experienced counsel `should be afforded substantial consideration by a court in evaluating the reasonableness of a proposed settlement.'" In re LivingSocial Mktg., 2013 WL 1181489, *10 (quoting Meijer, Inc. v. Warner Chilcott Holdings Co. III, 565 F.Supp.2d 49, 58 (D.D.C.2008) (quoting Lorazepam, 2003 WL 22037741, at *6)). In this case, this factor does not weigh in either direction.
Weighing all five factors together, the Court finds that they tilt in favor of finding the settlement was fair, adequate and reasonable. Accordingly, the Court will approve the settlement, and grant the government's motion to dismiss the case.
On Ms. Schweizer's retaliation claim, the Court must only decide "the ultimate question whether a reasonable jury could infer retaliation from all the evidence." Schweizer, 677 F.3d at 1241. The issue is whether there is a genuine issue of material fact as to whether retaliation was a "but-for" cause of Océ's decision to terminate Ms. Schweizer.
Over the course of 2005, Ms. Schweizer found and reported violations of federal contracts by her employer, ultimately leading to the $1.2 million settlement reached between the government and Océ, approved today. In the same period, she also engaged in a variety of questionable and perhaps unprofessional conduct.
As the circuit found, Ms. Schweizer's asserted link between her protected activity and her termination is supported by direct as well as circumstantial evidence. Circumstantially, her protected activities occurred in close temporal proximity to her termination and ultimately led to her employer paying a very substantial settlement. More directly, Ms. Schweizer alleges that her supervisor, Mr. Frost, attempted to stifle her protected activities by making threatening statements. After Ms. Schweizer brought violations to Mr. Frost, he allegedly "forb[ade][her] from investigating the matter and stat[ed] that management would `destroy' her if she disobeyed." Schweizer, 677 F.3d at 1230. And later, when she raised concerns about another set of violations, Mr. Frost "allegedly told her not to pursue the issue any further and again threatened to `destroy' her if she did not comply." Id.
In response, Océ's evidence documents Ms. Schweizer's erratic behavior over the same period, and shows that they may well have had a good reason to discipline, or even terminate, Ms. Schweizer. However, this evidence cannot eliminate any genuine issue of material fact as to whether Océ's desire to retaliate against Ms. Schweizer for her protected activities was a "but-for" cause of her termination. Notably, several of the events Océ points to as evidence of Ms. Schweizer's behavioral problems triggering her legitimate dismissal itself include whistleblowing activities. Océ concedes that Ms. Schweizer discussed the allegations regarding the GSA contracts during her phone conversation with Mr. Beauchamp in the days immediately before her suspension. Def.'s Statement ¶ 37. And, according to Ms. Schweizer's account of her "heated discussion" with Mr. Frost on September 2, she complained that her coworker Ms. Carey had "falsified documents to the government." See Schweizer
On this record, Ms. Schweizer's claim survives summary judgment. A reasonable jury could make infer that retaliation was a "but-for" cause of her termination. Océ's motion for summary judgment is DENIED.
The government's motion to dismiss the qui tam claims is GRANTED. Océ's supplemental motion for summary judgment as to the retaliation claim is DENIED. An Order shall issue with this opinion.
Defs.' Ex. P.
42 U.S.C. § 2000e-3.